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Centre Number Candidate Number
a Pearson Edexcel
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Level 3 GCE
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Business
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Advanced
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Paper 3: Investigating business in a competitive
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environment
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Friday 23 June 2017 – Afternoon Paper Reference
Time: 2 hours 9BS0/03
You must have: Total Marks
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Instructions
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• Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answerarealltwoquestions.
There sections in this question paper.
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• The total mark for this paper is 100.
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Advice
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Read the following extracts (A to D) before answering Question 1.
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Write your answers in the spaces provided.
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Extract A
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Ethics in the UK health and fitness club industry
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The nature of a health and fitness club can lead to a number of potential ethical
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problems. Many fitness clubs rely on memberships for much of their revenue, getting
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customers to sign contracts that commit them for a period of months - even years.
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Members trust staff to help them achieve their fitness goals. If a member joins who is 5
overweight, out of shape and wants to compete in a triathlon in a month, a personal
trainer’s response should be to point out that the goal might be unrealistic. The trainer
should instead suggest a less challenging activity, or a longer time frame.
Where a club is given an incentive to promote the sales of a particular product line, such
as an energy bar, the potential reward must not lead to staff overstating the product’s 10
benefits.
(Source: adapted from http://yourbusiness.azcentral.com/
ethical-problems-fitness-club 25902.html)
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Extract B
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More clubs, more members, more money
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Technological innovation and an enhanced consumer experience helped the UK health
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and fitness industry to expand between 2014–2015, according to the 2015 State of the
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UK Fitness Industry (SOFI) Report.
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Key Performance April 2013- April 2014- April 2015- April 2016-
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Indicator March 2014 March 2015 March 2016** March 2017**
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Revenues* £4.07bn £4.30bn £4.70bn £4.90bn
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Health and fitness
5,935 6,312 6,400 6,500
clubs (number)
Membership
8.28 million 8.78 million 9.20 million 9.50 million
(number)
In the same period, the share of UK adults who were health and fitness club members,
increased by 0.5%, rising to 13.7% – the highest ever level. This market trend was
expected to continue.
*Revenues include membership fees, walk-in or guest fees, personal training fees,
sportswear and food and beverage sales.
**Forecast
(Source: adapted from http://www.healthclubmanagement.co.uk/detail.cfm?pagetype=
detail&subject=news&codeID=316479#sthash.lBsC3oO2.dpuf, 18 June 2015)
Extract C
Gym surge
Britons are trying to get fitter with a bigger than usual January rush this year to join gym
chains, as people resolve to work off their Christmas overindulgence. The media focus on
health and fitness has also helped encourage less active people to exercise more. Fitness
First, a health club chain, stated that membership retention is at one of its highest levels. 5
A spokesman said: “Every day we are bombarded with messages in the media on how
an hour of exercise, three times a week, can help boost overall life expectancy and
wellbeing.”
(Source: adapted from http://www.express.co.uk/finance/city/633097/
Gym-surge-Greggs-sales-UK-interest-rates-Arla, 10 January 2016)
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